Skyway Capital warning issued Estonian financial regulator
Estonia’s Financial Supervision Authority (FSA) is the country’s top financial regulator.
Following increased interest and participation in Skyway Capital, the FSA issued an investment warning back in April.
The FSA identify Skyway Capital as First SkyWay Invest Group LTD, a “dormant” shell company incorporated in the UK.
As per Skyway Capital’s compensation plan, affiliates invest funds on the promise of a daily ROI of up to 22%.
Seeing as Skyway Capital aren’t registered with the FSA to offer securities in Estonia, the FSA claim it’s an illegal unregistered securities offering.
First SkyWay Invest Group LTD has not submitted to (the) Financial Supervision Authority documents required for public offering of securities and therefore is not authorised to publicly offer securities in Estonia.
To the best of my knowledge Skyway Capital has not registered itself with any authority in any jurisdiction it solicits investment from.
As per Alexa traffic estimates, interest in Skyway Capital began to decline in mid-April.
With the monorail ruse all but collapsed, word on the grapevine is the company is gearing up to launch its own cryptocurrency.
Wait a minute, isn’t Chris Principe, owner and publisher of Financial IT magazine, suing someone in part for damaging his financial relationship with Skyway Capital?
The same Skyway Capital that Estonia’s Financial Supervision Authority has issued a warning about?
In fairness to Skyway Capital they have thus far not generated nearly as many warnings, arrests or regulatory actions as another company that Chris Principe, owner and publisher of Financial IT magazine, has publicly promoted.
(OneCoin in case anyone was wondering)
@GlimDropper- why yes. That would be me. Case is still “pending” in FEDERAL Court, from April 6th – meaning that I have not been properly “served” at this point in time.
Federal Rules of Civil Procedure under Rule #4 grant 90 days from original filling for Plaintiff to do so, otherwise the Court will motion to dismiss the Case “without prejudice.”
So, the next 3 weeks will be telling to see if this was just a “bluff” or not. My team is fully prepared, either way, and I’m very pleased that several “anonymous” (and other named) sources have now surfaced and reached out to us with additional information which would suggest carrying forth would be extremely disadvantageous to the party.
Therefore, at this point we’re strategizing the next step, if any at this point, and will simply “observe” any proverbial Chess moves with counter maneuvers.
I’m prepared for either a rather boring outcome, but also for anything “a bit more exciting,” …although we won’t be “revealing our hand,” most *likely, unless the situation calls for it. That’s really all I’m at liberty to say at the moment.
As far as I can ascertain none of the five threatened lawsuits have been served in Norway, Germany, America , UK, and Ireland and Pierre Aren’s alleged strategy to take matters to the Courts is a damp squib.
However, they are still recruiting so money is coming in and the lawyers get paid so all a bit of a feeding frenzy on a dying corpse.
Don’t know whether the defendants have the right to sue for vexatious litigation or indeed complain to the Law Society or send a bill for your lost time and then seek redress when that is not paid
OneCoin will not be able to manage Court scrutiny but they will just go away and reap the interim benefits of ongoing recruitment.
The Czech Republic and Slovakia have apparently also released a warning about the activities of the SkyWay Group in their countries.
Norway shared the warning distributed by Lithuania as well as other countries who’ve been mentioned on this site already but who elaborated with specificities particular to the activities of the SkyWay Group operating in their country.
CONSOB, the Italian financial regulatory agency, has also warned about the activites of SkyWay and they actually banned the sale of SkyWay shares.
Here is the reference from the Bank of Slovakia: nbs.sk/sk/dohlad-nad-financnym-trhom-prakticke-informacie/upozornenia-a-oznamenia/upozornenia-na-nepovolenu-cinnost-subjektov/upozornenie-narodnej-banky-slovenska-na-cinnost-spolocnosti-first-skyway-invest-group-ltd.
Here is the Czech National Bank warning: cnb.cz/cs/spotrebitel/ochrana_spotrebitele/upozorneni/upozorneni_euroasian_rail_skyway.html.
We are currently searching for secondary verifiable references which mention Norway, Slovakia or the Czech Republic regulatory warnings so we can update the Wikipedia English article on the SkyWay Group.
The Latvian regulatory agency FCMC/FKTK released a regulatory warning against the activities of SkyWay and associates in 2018.
This is from an article published on 10 April 2018 on the popular news portal of the Baltic States in Latvian (DeLFI):
Here is a translation from the article:
It seems that someone called Gargazevič went to the police to declare they had invested a lot of money in SkyWay.
Currently SkyWay sock-puppets on the Wikipedia SkyWay Group talk page are arguing that they, in fact, do not sell shares and are not committing fraud.
They say they are offering perfectly legal ‘Pre-IPO shares’ or ‘convertible notes’ (I assume they mean convertible bonds) but from what I can tell they do not have the legal right to sell these either.
Because they are entirely unregulated you can’t believe that they will every pay you anything in the future even if they did ever ‘go public’.
And it seems that convertible bonds are normally regulated like shares and thus can’t be sold without the necessary prospectus.
Any information on the actual validity of ‘Pre-ipo shars’ and ‘converstible notes attained through crowdfunding’ appreciated.
Securities are regulated the world over.
There’s a difference between being unregulated (eg. committing investment fraud in Dubai) and operating illegally, which Skyway Capital does the world over.
A “pre-IPO share” is just any share that isn’t listed on a stockmarket. The existence of pre-IPO shares isn’t regulated. I can create myself a million pre-IPO shares in Malthusian Enterprises plc for less than £100 by registering a new company with Companies House. And trade them back and forth with my friends if I feel like it. There’s nothing special about them.
What *is* regulated is selling shares and other securities to the public.
A “convertible bond” is simply a loan that carries the right to convert the loan into a pre-agreed number of shares.
Basically if the company goes to the moon you convert your debt into shares and cash in (which you couldn’t do with a standard loan note). If it trundles along only just making enough money to pay its debts, you just take the coupon like a normal debt (if you had ordinary shares you would receive no dividends).
It’s a hybrid between the fixed coupon of a loan and the unlimited upside potential of equity. However you would get a lower coupon than an ordinary loan (in exchange for the conversion rights) and wouldn’t get as many shares as if you just bought ordinary shares outright (with no right to a loan coupon).
The sale of convertible loan notes to the public is regulated in any civilised jurisdiction, along with any other kind of security.
The notion that unlisted shares and convertible loan notes are not subject to regulation is nonsense.
So if I’ve got this right anyone can create pre-IPO shares and trade them to their friends if they want but they can’t sell them on the open-market to the public?
Am I right in assuming that a company which has not applied for the legally required prospectus to sell their shares on the open-market, is not allowed to sell convertible loan notes either? That is what SkyWay seems to be doing.
Thanks for the informative posts.
An article published in the Adelaide newspaper “The Advertiser” on 23 February 2019 (“Warnings mount as it all looks like pie in the Sky-Way”) suggests that SkyWay helps finance its projects by getting potential investors to lend them money with the promise of getting discounted shares when the company goes public:
From what I’ve read about Convertible Loan Notes here and in other places on the internet, this seems to describe what SkyWay is still trying to ‘sell’. It seems unlikely that this company will ever go public and that the offer of CLNs is to say the least unreliable.
I’d like to better understand, however, whether or not this company has the right to negotiate CLNs with the general public seeing that they have not applied to officially sell their shares anywhere.